The payment plan is often what decides which off-plan project makes sense for you, more than the price itself. Two apartments with the same price can feel completely different depending on when the money is due. Here is how the plans work in Dubai, with real numbers.
What is an off-plan payment plan?
It is the schedule, written into your Sale and Purchase Agreement (SPA), that says how much you pay and when. A typical structure looks like this:
- Booking deposit to reserve the unit;
- Payment at SPA signing;
- Instalments during construction, often linked to dates or construction milestones;
- Balance at handover, when you receive the keys.
All payments go to the project’s RERA-regulated escrow account, not to the developer directly. The 4% Dubai Land Department fee is separate and usually paid at booking or SPA stage.
What do 40/60, 35/65 and similar numbers mean?
The first number is the share you pay during construction, the second is the share due at handover. So 40/60 means 40% before completion and 60% at handover. The larger the second number, the less money you tie up while the building is going up, but the bigger the payment you need to plan for at the end.
Worked example: a Listone Residence studio on 40/60
Listone Residence in Warsan 1 offers 40/60 for studios. Studios start from AED 553,888.
| Item | Calculation | Amount |
|---|---|---|
| Price | AED 553,888 | |
| During construction (40%) | 553,888 x 0.40 = 221,555.20 | about AED 221,555 |
| At handover (60%) | 553,888 x 0.60 = 332,332.80 | about AED 332,333 |
| Check | 221,555 + 332,333 | AED 553,888 |
| DLD fee (4%), on top | 553,888 x 0.04 = 22,155.52 | about AED 22,156 |
The rounding adds up exactly to the price. Admin fees come on top of this and are small; ask for the exact figure for your unit. How the 40% is split between booking, SPA and construction instalments is set in the SPA schedule, so ask for the full schedule before you book.
Compare with full cash: Listone Residence offers a 10% discount for full payment. On the same studio that would be 553,888 x 0.90 = 498,499.20, about AED 498,499, a saving of about AED 55,389. The trade-off is that the whole amount is paid upfront, years before handover in Q3 2028.
For 1 and 2 bedroom units the plan is 35/65, so an even larger share is due at handover.
How do post-handover payment plans work?
With a post-handover plan, part of the price is paid after you receive the keys. Listone Residence offers a 2-year post-handover option. The benefit is simple: once the unit is handed over you can rent it out, and the rent can help cover the remaining instalments.
Ask for the exact post-handover split before you sign, since it changes what you pay at handover.
Which plan suits you?
- You want a low entry and have steady income: a plan with a larger handover share, or a post-handover plan.
- You have the full amount now: compare the cash discount with what that money could earn elsewhere.
- You need the unit to earn soon: look at projects close to handover. Gateway Residences in JVC is scheduled for handover in Q3 2026, while South Lofts in Dubai South, from AED 419,200, hands over in Q2 2028. Ask me for their current payment plans.
Mistakes to avoid
- Forgetting the handover payment. 60% of the price is a big sum. Plan where it will come from years in advance: savings, sale of another asset or a mortgage.
- Forgetting the DLD fee. It is paid on top of the price and early, not spread over the plan.
- Comparing prices without comparing plans. A slightly higher price with a softer plan can be the better deal for your cash flow.
- Not reading the SPA schedule. The dates and amounts in the SPA are what you are committed to.
For the complete list of purchase costs see how to buy off-plan in Dubai. If you plan to pay from abroad, see buying from abroad.
Get your own schedule
Message me on WhatsApp with the project and unit type you like, and I will send you the current payment plan with the amounts calculated for your budget.
